WINDSOR, ONTARIO – July 15, 2015 – The Radical Consumerist, is an Investment Newsletter focused on discovering and showcasing high-yield investment opportunities along with breaking news and analysis geared at maximizing returns for ordinary investors in the consumer products space.
The Greek crisis has exposed the cracks in the great European experiment and even though a deal has been struck, the crisis is far from over.
US markets have had their fair share of ups and downs from the crisis and everyone pretty much has one eye open for any potential impact – Greece could after all trigger a domino of crashes.
The big question on the lips of everyone following the Greek crisis is how this affects US investors and the economy.
Few investors realize that the American middle class is not what it used to be. In fact, a recent report from CNN concluded that American’s median wealth is a mere $44,900 per adult. In terms of a global rank that puts the country in 19th place behind Japan, Canada, Australia and much of Western Europe.
So, the Greek crisis is about more than equity markets. It’s about the basics of what makes the American middle class the beacon of the world, the American dream: houses, jobs, cars and vacations.
Housing remains one of the strongest barometers for middle class dominance and it’s in this sector that investors have the greatest opportunity amidst the current crises. But it is not the traditional housing we are referring to. In fact, the sector of the industry that we are referring to has even Warren Buffet involved (that should tell you something). If this subsector is not part of your portfolio then you stand to miss a potentially massive opportunity for growth.
One of the biggest investment opportunities right now is the manufactured homes sector. As incomes continue to fall relative to the sharper increase in home prices, more people living in the United States are looking for high quality, low-cost housing solutions.
The shift in purchasing habits has created a market that is growing rapidly. Manufactured home sales grew from 52,000 units in 2011 to a whopping 64,000 units at the end of 2014. That is a 23% industry increase in sales in just 4 years.
The dollar-growth has also been something to behold. What was a $3.1 billion industry in 2011 is now worth $4.1 billion according to the Manufactured Housing Institute.
Wisdom Homes of America, Inc. (OTC: WOFA) offers a very interesting proposition based on its goals and strategic positioning in the manufactured home industry. DryShips, Inc. (NASDAQ: DRYS), Aegean Marine Petroleum Network, Inc. (NYSE: ANW) and Diana Shipping, Inc. (NYSE: DSX) present value propositions in their own right. All are worth serious investing attention.
WOFA and Its Scalable Business Model Is A Prefect Fit In A $4.1 Billion Industry
If investors are looking for a company that has a clear vision of the future then they need look no further than WOFA. The company has laid out a very open and strategic plan for growth and the scalable nature of the setup is what many believe could transform the company into a very high-value stock.
WOFA has based its growth model on a combination of retail sales, residential subdivision sales and home mortgage origination.
The company anticipates building no fewer than 30 retail centers over the next 5 years which each center generating an anticipated $2.3 million in sales annually. This is a projected income of $69 million a year, a figure which is realistic given the absolute swelling of the manufactured home industry since 2011.
WOFA also plans to expand into subdivision sales by offering home owners the ability to purchase “spec manufactured homes” in existing subdivisions. The company currently controls and/or owns 44 lots in northeast Texas and anticipates profits per home sale of between $15,000 – $20,000. They’re currently doing due diligence on 200 additional residential lots in existing subdivisions. Mortgage origination services are expected to be delivered through their own retail stores and then expand to offer mortgage services via 1,000 retailers nationwide.
Wisdom Homes of America, Inc. (OTC: WOFA) is a solid example of what an early-stage investment opportunity looks like for the savvy investor.
WOFA Delivers In 2nd Quarter Revenue Report
WOFA recently highlighted its growth potential when it announced significant numbers for its 2nd quarter revenue.
The company informed shareholders that second quarter revenue exceeded $1.2 million with overall revenue on track to hit $4 million by the end of 2015, their first full year in business.
Shareholders got a glimpse into one of the company’s flagship property offerings in Sherman, Texas.
WOFA highlighted the fact that the model its created in Texas offers two revenue streams from the sale of manufactured housing: 1) sales from the soon to open Sherman retail center and 2) selling land-home packages in the Sherman residential subdivision.
Wisdom Homes of America, Inc. (OTC: WOFA) Among Interesting Field (Including A Warren Buffet-Related Operation)
WOFA occupies an interesting opposition among a field of companies that show remarkable scale in the manufactured home industry.
Cavco Industries, Inc. (NASDAQ: CVCO) has a market cap of $638 million whilst Skyline Corporation (NYSEMKY: SKY), though not as big, is doing all right for itself with a $25 million market cap.
The field of companies also includes Nobility Homes, Inc. (OTCQX: NOBH) which has a market cap of $39 million and Sun Communities, Inc. (NYSE: SUI) which has a gigantic $3B market cap.
Perhaps the biggest indicator of the growth potential in the manufactured home sales sector comes from Clayton which is owned by none other than by Berkshire Hathaway. The Warren Buffet led entity is a clear indication that manufactured homes is a very important growth sector for investors.
Manufactured Housing Is the Defining Investment Opportunity
Wisdom Homes of America, Inc. (OTC: WOFA) has clearly outlined a vision that shareholders can relate to. The ambitious 30-retail locations slated for building over the next 5 years is a testament to what is on the table.
But WOFA offers something else, something that other companies in this sector lack. It offers a chance for investors to capitalize (early) on the shifting trend in home sales. Over 141 million Americans represent the total US workforce (non-farming) and each sector within this overall mass is experiencing declining incomes.
The demand in the coming years for low-cost and high quality housing cannot be overstated and WOFA represents the clearest opportunity yet for investors to capitalize.
DryShips, Inc. (NASDAQ: DRYS) which operates in the bulk shipping sector recently sold 6 of its tankers for a reported $245 million. The sale which didn’t surprise Wall Street (intent was announced in March 2015), represents a chance for the company to shore up its balance sheet and lighten its debt burden. The move has clearly delighted Wall Street because the stock has rallied as much as 9% in recent trading.
Aegean Marine Petroleum Network, Inc. (NYSE: ANW) continues to show impressive form and has been getting coverage from a few top investment analysts. The buzzword for the company is “value” which seems to be tied into the company’s current undervalued pricing.
Ione recent analysis of what makes ANW attractive pointed to the .11 price to forward sales metric for the company. The industry average is around 2.32 which make ANW an attractive undervalued opportunity at current levels.
Diana Shipping, Inc. (NYSE: DSX) recently announced that through a separate wholly-owned subsidiary, it entered into a time charter contract with Cargill International S.A., Geneva, for one of its Panamax dry bulk vessels, the m/v Naias. The gross charter rate is US$6,800 per day minus a 4.75% commission paid to third parties, for a period of minimum ten (10) months to maximum thirteen (13) months.
The deal would have escaped the eyes of many investors but those paying attention would have noticed the estimated $4.35 million slated to be made from the employment of the two vessels, Naias” and “Thetis.”
The tie-in of the four companies outlined above has a common thread: massive upside opportunity. Wisdom Homes of America, Inc. (OTC: WOFA) in particular is a worthy addition to an investment portfolio.
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